MIRA INFORM REPORT

 

 

Report Date :

29.03.2014

 

IDENTIFICATION DETAILS

 

Name :

DMG MORI SEIKI CO LTD

 

 

Registered Office :

2-35-16 Meieki, Nakamura-ku, Nagoya City, Aichi 450-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013 (consolidated)

 

 

Date of Incorporation :

26.10.1948

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of machine tools (including machining centers, NC lathes & other products)

 

 

No. of Employees

4,218

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

japan ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

 


Company name

 

DMG MORI SEIKI CO LTD

 

 

REGD NAME

 

KK Mori Seiki

 

 

MAIN OFFICE

 

2-35-16 Meieki, Nakamura-ku, Nagoya City, Aichi 450-0002, Japan

Tel: 052-587-1811     Fax: 052-587-1818

 

URL:                 http://www.dmgmoriseiki.co.jp

E-Mail address:            (thru the URL)

 

 

 

 

ACTIVITIES  

 

Manufacturer of machine tools (including machining centers, NC lathes & other products)

 

 

BRANCHES

 

Tokyo Branch Address
18th Floor, Shinagawa Intercity Tower A, 2-15-1 Konan Minato-Ku, Tokyo, 108-6018, Japan
Tel.:                  +81-3-5460-3570

 

Chiba Branch address

488-19 Suzumi-cho, Funabashi City, Chiba 274-0052, Japan

Tel.:                  +81-47-410-8800

 

Mie Branch Address

201 Midai, Iga City, Mie 519-1414, Japan

Tel:                   +81-595-45-4151

 


OVERSEAS   

 

USA, China, Europe, Asia, other

 

 

FACTORIES  

 

Nara No. 1 Plant

362 Idono-cho, Yamato-Koriyama City, Nara 639-1183, Japan

Tel:       +81-743-53-1121

 

Nara No. 2 Plant

106 Kita-Koriyama-cho, Yamato-Koriyama City, Nara 639-1160, Japan

Tel.       +81-743-53-1125

 

Other Factory located at:

USA, Germany (4), Poland, Italy (2), China, Russia

 

 

TECHNICAL CENTERS

 

Europe (30), North America (17), Asia/Oceania (22)

 

 

CHIEF EXEC

 

MASAHIKO MORI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 148,559 M

PAYMENTSREGULAR   CAPITAL           Yen 41,132 M

TREND UP                    WORTH            Yen 104,481 M

STARTED         1948                 EMPLOYES      4,218

 

 

COMMENT

 

MFR OF MACHINE TOOLS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

66,402

-26,599

-34,693

(%)

98,717

(Consolidated)

31/03/2011

120,428

566

1,307

81.36

95,328

31/03/2012

155,320

5,915

5,619

28.97

94,718

31/03/2013

148,559

5,005

5,170

-4.35

104,481

31/03/2014

158,000

8,500

7,200

6.36

..

 

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-class mfr of NC lathes and MC’s.  Advanced into machine tools in 1958, achieving high growth following marketing of NC lathes in 1968.  Overseas sales ratio high backed by global network for marketing and maintenance services.  Has capital and business alliance with Gildmeister of Germany.  The company started operation at its plant in Tianjin, China, which produces horizontal machining centers, on Oct 2013, and start casting with an eye to exports.  As it will complete integration of sales network with DMG of Germany in Mar 2015 term, the company intends to strengthen marketing to automakers. .

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 148,559 million, a 4.4% down from Yen 155,320 million in the previous term.   The recurring profit was posted at Yen 5,005 million and the net profit at Yen 5,170 million, respectively, compared with Yen 5,915 million recurring profit and Yen 5,619 million net profit, respectively, a year ago.

           

(Apr/Dec/2013 results): Sales Yen 112,953 million (up 3.9%), operating profit Yen 4,529 million (up 96.0%), recurring profit Yen 6,153 million (up 175.3%), net profit Yen 5,229 million (up 114.7%).  (% compared with the corresponding period a year ago). 

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 8,500 million and the net profit at Yen 7,200 million, on a 6.4% rise in turnover, to Yen 158,000 million.  Orders for mainstay NC lathes and machining centers are increasing in the second half in Japan and the US, led by strong demand from automakers.  Sales are bottoming out in Europe.  Operating profit increase will accelerate, buoyed by the weaker-than-anticipated Yen 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered: 26 Oct 1948

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       200 million shares

Issued:                118,475,312 shares

Sum:                   Yen 41,132 million

 

Major shareholders (%): Gildmeister (9.0), Company’s Treasury Stock (6.6), Master Trust Bank of Japan T (4.7), Japan Trustee Services T (3.9), Masahiko Mori (2.9), Bank of New York Jasdec Treaty (2.8), Chieko Mori (1.9), Nomura Trust Inv T (1.7), Masaru Mori (1.5), Employees’ S/Holding Assn (1.2); foreign owners (29.7)

 

No. of shareholders: 37,278

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Masahiko Mori, pres; Tatsuo Kondo, v pres; Hiroaki Tamai, s/mgn dir; Naoshi Takayama, mgn dir; Toshio Sato, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: DMG Mori Seiki USA, Magnescale Co, other.

 

OPERATION

           

Activities: Manufactures machine tools: machining centers, NC lathes & other products; Japan (34%), US (32%), Europe (18%), China & Asia (16%)

 

Overseas Sales Ratio (66%)

 

Clients: [Mfrs, wholesalers] DMG Mori Seiki USA, Mori Seiki Europe, DMG Mori Seiki Sales & Services, DMG Mori Seiki Trading, other

            No. of accounts: 700

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] DMG Mori Seiki Trading, Mitsubishi Electric, Fanuc Corp, DMG Mori Seiki USA, other

 

Payment record: Regular

 

Location: Business area in Nagoya.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (Nara)

MUFG (Nara)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

148,559

155,320

  Cost of Sales

104,393

105,950

      GROSS PROFIT

44,165

49,370

  Selling & Adm Costs

40,031

42,581

      OPERATING PROFIT

4,134

6,788

  Non-Operating P/L

871

-873

      RECURRING PROFIT

5,005

5,915

 

      NET PROFIT

5,170

5,619

BALANCE SHEET

  Cash

 

6,287

4,549

  Receivables

24,824

31,735

  Inventory

37,939

43,272

  Securities, Marketable

 

101

  Other Current Assets

5,689

6,371

      TOTAL CURRENT ASSETS

74,739

86,028

  Property & Equipment

62,788

55,562

  Intangibles

5,912

5,878

  Investments, Other Fixed Assets

43,214

37,951

      TOTAL ASSETS

186,653

185,419

  Payables

9,077

10,702

  Short-Term Bank Loans

23,929

28,778

 

 

 

  Other Current Liabs

11,247

13,614

      TOTAL CURRENT LIABS

44,253

53,094

  Debentures

30,000

30,000

  Long-Term Bank Loans

 

 

  Reserve for Retirement Allw

222

341

  Other Debts

 

7,697

7,266

      TOTAL LIABILITIES

82,172

90,701

      MINORITY INTERESTS

Common stock

41,132

41,132

Additional paid-in capital

53,863

53,863

Retained earnings

18,270

15,312

Evaluation p/l on investments/securities

2,616

2,132

Others

343

(5,979)

Treasury stock, at cost

(11,743)

(11,742)

      TOTAL S/HOLDERS` EQUITY

104,481

94,718

 

      TOTAL EQUITIES

186,653

185,419

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

21,421

8,616

Cash Flows from Investment Activities

-10,089

-22,079

Cash Flows from Financing Activities

-10,085

10,872

 

Cash, Bank Deposits at the Term End

 

6,268

4,532

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

104,481

94,718

Current Ratio (%)

168.89

162.03

Net Worth Ratio (%)

55.98

51.08

Recurring Profit Ratio (%)

3.37

3.81

Net Profit Ratio (%)

3.48

3.62

Return On Equity (%)

4.95

5.93

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.09

UK Pound

1

Rs.99.85

Euro

1

Rs.82.58

                

INFORMATION DETAILS

 

Report Prepared by :

MNL

               

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.